World Liberty Financial invests $10 million in Falcon Finance

Donald Trump-backed DeFi project, World Liberty Financial (WLF), has provided Falcon Finance with a $10 million strategic investment. The investment seeks to advance integrations between WLFI’s USD1 stablecoin and Falcon’s synthetic dollar protocol, USDf.

Falcon Finance disclosed the investment in a press release, stating that it would also be spent on supporting multi-chain compatibility, smart contract modules, and shared liquidity provisioning, promoting effortless conversion between USDf and USD1.

Speaking on the investment, Falcon Finance managing partner Andrei Grachev expressed excitement, noting that it continues the protocol’s effort to redefine digital dollar solutions.

He said:

“This investment validates our approach to creating more efficient on-chain dollar instruments for institutional users, and WLFI’s distribution network will help accelerate adoption of our technology.”

Falcon Finance is a synthetic dollar protocol focused on building an infrastructure layer that will connect both on-chain and off-chain financial ecosystems. Since its public launch in May, the protocol has seen sizable growth, showing the market demand for its products.

Meanwhile,  WLF co‑founder Zak Folkman noted that the deal with Falcon is part of World Liberty’s effort to build a unified and comprehensive DeFi ecosystem.

He said:

“By combining Falcon’s innovative collateralization model with our fiat-backed approach, we are creating a more robust and flexible digital dollar infrastructure that will meet the diverse needs of both retail and institutional users across the global market.”

However, there is no clear information on the deepening partnership between the two protocols. Only that it will combine the strengths of the two platforms with the stability of WLF through its USD1 stablecoin, complementing the yield generation from Falcon Finance USDf.

USDf circulating supply hits $1 billion

Interestingly, the deal is coming on the back of Falcon’s recent milestone of $1 billion in circulating supply for USDf.  This represents a massive growth for the synthetic stablecoin, given that it launched only a few months ago.

It is now among the top ten Ethereum-based stablecoins by market capitalization. According to Defillama, USDf has a supply of $1.072 billion, all on Ethereum, and it has seen a 121% increase in supply over the past month. The rising supply is due to more demand for the synthetic dollar among DeFi users.

Falcon Finance had also launched several initiatives, including the Falcon Miles point program and transparency measures such as a quarterly assurance review by Harris & Trotter LLP. It also introduced a Transparency Dashboard a few days ago to give an insight into all assets backing USDf, which include Bitcoin, stablecoins, and other altcoins.

The protocol also recently completed a live mint supported by tokenized US Treasury bills, making it the first synthetic dollar token supported by real-world assets. It also released a roadmap for the next 18 months, showing how it intends to expand into Latin America and the Eurozone while deploying on other Layer-1 and Layer-2 networks.

Despite its growth, it remains well behind the leading synthetic dollar protocol, Ethena USDe, which now has $7.73 billion in circulating supply. USDe supply has also increased by 45.94% in the past month, showing that the synthetic stablecoins are seeing increasing adoption.

World Liberty Financial’s WLFI set to become tradable

Meanwhile, this investment is the biggest news out of World Liberty Financial in the past week. The protocol has been relatively quiet on announcements and developments since completing the community vote on whether to make its token WLFI tradable.

The vote ended with an overwhelming support for enabling tradeability, with 99.94% of the votes supporting it. While WLF has acknowledged the results, it has yet to disclose when trading will start, stating that users should stand by for the full launch plan.

Nevertheless, the protocol continues to make a series of investments, including accumulating more ETH. A few days ago, it bought additional ETH and now holds close to $300 million worth of Ether.

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